Gifted Mortgage Down Payment

The minimum down payment required to purchase a home is 5%. For first time buyers, especially in Vancouver it’s pretty hard to come up with the whole down payment without a little help. For those people a gifted mortgage down payment can help them get to the 5% or even be used on top of what they have initially saved to help avoid paying CMHC mortgage insurance.

For self-employed borrowers using stated income programs that require a 10% down payment a minimum of 5% must come from the borrowers your own savings. The remainder may be gifted.

How do gifted mortgage down payments work?

Gifted down payments must come from a relative or immediate family member.

Lenders will require a letter of confirmation verifying the gift is unencumbered, requires no repayment and states relationship of giftor to giftee.

You will also need to confirm the gifted down payment has been received in your account prior to closing on your purchase.

If you would like more information about gifted down payments or on how to get pre-approved for a mortgage don’t hesitate to contact me or leave a comment.